We all know smoking is not a great health choice. Most of us have dabbled with it though and some are still enjoying the vice.
For those though who want to get rid of it, the expenses can be made a tax deduction on the German end if certain requirements are met. Here are the taxperts’ suggestions as to utilizing those expenses
- No reimbursement
Any expense that were covered through your health care provider or paid for by somebody else (maybe an employer) cannot be utilized. Only those expenses count which you ultimately had to bear yourself.
- Doctor’s note
A doctor should confirm in writing that there is a health indication for you trying to quit smoking. The same holds for any expense regarding certain therapy sessions and self help health services.
- Covered expenses
People usually deal with the following expenses when trying to give up cigarettes:
- Doctor’s and hospitals as well as other therapists
- Prescribed medication (and sometimes antidepressants)
- Nicotine tapes and chewing gums
- Acupuncture
- Hypnosis
- Behavioral therapy
- Professional coaching
- Self help classes
- Travel expenses to doctors, self help groups…
For medication to count there needs to be a prescription. Any (medical) treatment and help session should also be accompanied by a doctor’s note assuring that the measure is medically necessary and other treatments promise little to no prospect for success.
When travelling to your doctor or health provider please keep a tab of the times you went, the distance to and from, as well as any parking ticket and other travel-related expense along the way.
- Limitations
Expenses which you occure along the way but are not necessarily specific to quitting your smoking habit cannot be used. So, the leisure magazines in the hospital, the coffee during self help sessions, the speeding ticket when driving to the doctor do not count.
Since the expenses go into the bucket for so called „extraordinary expenses“ the total only has an effect on your tax liability when a certain threshold in comparison to your income is exceeded. For this reason we cannot provide a ballpark figure as to when it is going to kick in and how much you will save.
We do know though, that when you do not document as described your expenses will most definitely fall through and there will not be any tax savings at all!
So, if you know that you will try to put a stop on your smoking or are already in the middle of it, please reach out to the taxperts to make sure you do not only get a better health, but also some of your money back.
